Home > Business > Economy

Gov't eyes grace period for multiple-home owners as tax exemption deadline approaches

Published: 03 Feb. 2026, 16:48

Koo Yun-cheol, minister of economy and finance, speaks during a Cabinet meeting at the Blue House in central Seoul on Feb. 3. [YONHAP]

Korea will end a temporary exemption on higher capital gains tax for owners of multiple homes on May 9, while considering limited grace periods for transactions already in progress, Economy and Finance Minister Koo Yun-cheol said Tuesday.

Koo reported the plan at a Cabinet meeting chaired by President Lee Jae Myung, held at the Blue House in central Seoul.

Koo said the government would allow exceptions for deals that have already progressed beyond contract signing, citing market practices and the need to limit disruption.

“We need to normalize abnormal and unfair practices, so we plan to end the tax exemption,” Koo said. “At the same time, we need to take into account real-world transaction practices and minimize inconvenience to the public.”

Under the proposal, transactions with contracts signed by May 9 would still qualify for the tax break if buyers meet extended payment or registration deadlines.

“In principle, buyers must complete payment by May 9 to qualify,” Koo said. “But for the three Gangnam districts and Yongsan District, we are proposing a grace period of up to three months, and up to six months for newly designated regulated areas, for either paying the balance or registering ownership.”

The Gangnam, Seocho and Songpa districts Koo refers to, as well as Yongsan District, have some of the country's most expensive housing markets, where transactions typically involve longer settlement periods and tighter regulations.

Koo said the government would finalize details after further discussion.

“I believe this is the last opportunity to avoid the heavier tax,” he said. “I hope people can make use of it so they do not end up subject to the surcharge.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY HAN YOUNG-HYE [[email protected]]